SURESTAY PROPERTIES LTD

Executive Summary

Surestay Properties Ltd is currently in a weak financial position with negative equity and no liquidity reserves, raising serious concerns about its ability to meet short-term liabilities and service debt. The company’s micro-entity status and lack of employees limit its operational capacity and resilience. Credit approval is not recommended until there is clear evidence of improved financial health and cash flow stability.

SURESTAY PROPERTIES LTD - Analysis Report

Company Number: 14194150

Analysis Date: 2025-07-29 15:31 UTC

1. Credit Opinion: DECLINE
   Surestay Properties Ltd shows signs of financial distress as of the latest accounts dated 30 June 2024. The company reports negative net assets of £860, a worsening position from £320 the previous year, indicating an erosion of shareholder funds. The accruals and deferred income exceed total assets less current liabilities, suggesting possible liabilities or obligations not fully supported by tangible assets or cash. The absence of current assets (cash or equivalents) in 2024 raises concerns over liquidity and the ability to meet short-term obligations, reflecting a weak payment capability. Given the company’s micro-entity size, no employees, and limited fixed assets, its resilience to economic downturns is minimal. The directors have not audited the accounts, relying on micro-entity exemptions, implying limited financial transparency. Management quality cannot be fully assessed but the negative equity position and declining balance sheet strength suggest caution.

2. Financial Strength:
   The balance sheet reveals a fragile financial position. Fixed assets increased slightly from £61,990 to £65,283, but current liabilities have appeared at £5,663 with no current assets to offset, resulting in negative net current assets of £5,663. Total net liabilities stand at £860. This negative equity position signals the company is technically insolvent under accounting definitions, relying heavily on accruals and deferred income that exceed tangible net assets. The lack of working capital and negative shareholders’ funds indicate poor financial strength and limited cushion for unforeseen expenses or downturns.

3. Cash Flow Assessment:
   The absence of current assets, including cash or receivables, strongly suggests liquidity issues. Negative net current assets imply the company may struggle to cover immediate liabilities. No employees and minimal operational scale reduce cash burn risk, but also limit revenue generation. The company may be relying on external funding or shareholder support to maintain operations. Without positive working capital or cash reserves, the ability to service debt or finance growth is severely constrained.

4. Monitoring Points:

• Monitor future filings for improvement in net current assets and positive equity restoration.
• Watch for any changes in accruals and deferred income that might further impair liquidity.
• Review management commentary or director reports for strategy to improve cash flow or capital injection.
• Track any new borrowings or guarantees that could impact financial risk profile.
• Assess any changes in ownership or director appointments for indications of restructuring or turnaround plans.